it's nice to know that buyers will get their money's worth as the full purchase price equates to the material's costs. good to know that they are not going to skimp out on quality, hardware-wise at least
I am not sure this comes as news to many people. Weren't they selling the last kindle at just above cost anyway?
I think the last Kindle was sold at a loss. The Nexus 7 is also sold at break-even price from Google.
It's because people don'y buy other tablets for the brand name, they buy it for the features. Apple could raise the price of the iPad to £1000 and it would still sell because most people buy one just because it is made by Apple and refuse to buy anything that isn't.
Not sure on their business plan, they should try and make some profit. Why sell kindles just to sell more books,films, apps. Why not just bump the price up a little bit a make some profit on the devices and they would probably still make the same amount from using the kindles.
Well good for them. It shows me that they aren't as greedy compared to a company that shall remain nameless.
Because the media they sell is where they're making their profit. If they raise the price then they'll be outsold by all the other $200 tablets and will make no profit.
I guess, but hey will also be losing money in other areas as well. Repairs, replacements, customer services, r&d, etc. Once they have released it they still have obligations. But I guess it must be working for them.
I don't mean to be rude, but obviously they're making an overall profit from this because they wouldn't be producing them otherwise.